Do you feel like your supplier contracts are managed poorly or are not getting enough attention? Or do you have contracts in place?
When contracts are not managed, expect a 5% increase in costs while if no contract exists, this cost increase could double to 10%. While you are focusing on getting the right product/service from the right supplier at the right price and time, without an effectively managed contract, your risk of not getting the product quality or service level you are paying for will increase. The ineffectiveness of monitoring, measuring and managing the implementation of the contract will put a further strain on internal relationships due to delivery issues.
Arvo understands that Contract Management is time-consuming, labour intensive and dare-we- say ‘boring’, but the results of greater visibility and control over the management of suppliers, necessitates such efforts. Arvo usually start by creating a central repository, often using a cloud-based platform where details on all contracts are stored. This results in effectively managed contracts so that:
1. Expected business benefits and value for money are being delivered and realised
2. Any provider of goods or services are co-operative and responsive
3. All parties know their obligations under the contract
4. Disputes are rare, and
5. The contract is fully compliant and satisfies both legislative and audit requirements
Talk to us today about your contract challenges, risks or concerns and we will discuss our action-oriented approach to mitigate such issues
To learn more about Arvo’s Tactical Procurement expertise, take note of the details at;